Garibaldi, Pietro; Turri, Enrico D. - 2024
The neoclassical growth model assumes fixed labor supply and competitive labor markets. Is it harmless to ignore … monopsonistic power in the neoclassical growth model? The paper argues that it is not, especially if a growth model needs to be … consistent with the long-run dynamics of the labor share. This paper solves a minimalist growth model with monopsonistic power at …